Middleby Corp (MIDD)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,476,740 | 3,479,550 | 2,807,360 | 2,259,810 | 2,524,240 |
| Inventory | US$ in thousands | 935,867 | 1,077,730 | 837,418 | 540,198 | 585,699 |
| Inventory turnover | 3.71 | 3.23 | 3.35 | 4.18 | 4.31 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,476,740K ÷ $935,867K
= 3.71
Middleby Corp's inventory turnover has been fluctuating over the past five years. The ratio indicates how efficiently the company is managing its inventory. A lower ratio may suggest overstocking, obsolete inventory, or difficulty in selling products. On the other hand, a higher ratio may indicate effective sales and inventory management.
In 2023, the inventory turnover ratio improved to 3.71 from 3.23 in 2022, indicating that Middleby Corp was able to sell its inventory more frequently during the year. However, the ratio in 2023 is still lower than the ratios in 2020 and 2019, suggesting a possible slowdown in inventory turnover efficiency.
It is essential for Middleby Corp to closely monitor its inventory turnover and implement strategies to optimize inventory levels to ensure efficient operations and profitability.
Peer comparison
Dec 31, 2023